Sfm-forex query

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

10 November 2011 kindly explain this solution

que-from the following rates,determine Rs/canadian$ exchange rate
Rs/US$ : Rs47.7568/47.9675
canadian$/US$ : 1.5142/1.5450

solution-
Rs/canadian$ Bid=(Rs/US$)bid*(US$/canadian$)ask
=47.7568*1/1.5450=Rs30.9106

(Rs/canadian $)ask=(Rs/US$)ask *(US$/canadian$)Bid
=47.9675*1/1.5142=Rs31.6784
Rs/canadian exchange rate is Rs 30.9106-Rs31.6784

CA. Vikash Dwivedi

CA. Vikash Dwivedi (Expert)
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14 November 2011 you need better understanding of FX conversion using Cross rates.
Instead of concentrating on a specific problem better to solve as many as you with that you would realise how it works.

to give you a tip. Bid rate of one currency is ask rate for other for the purpose of cross rate conversion.

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